Question

21. If you sell your product for $18.50 per unit and your fixed costs per unit...

21.

If you sell your product for $18.50 per unit and your fixed costs per unit are $3.50, what is your contribution margin per unit?

Select one:

a. $4.00

b. $15.00

c. $3.50

d. $11.00

e. None of the choices is correct or cannot be calculated.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

e. None of the choices is correct or cannot be calculated.

Contribution margin = Selling per per unit - variable cost per unit

in above case only SP ie 18.5 is given but information about variable cost per unit is missing

hence contribution margin per unit cannot be calculated

I hope my workings are enough to understand
Thanks in advance for giving me positive ratings
for any clarification feel free to comment on it
May God bless you and have a wonderful day
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1.) A firm expects to sell 25,700 units of its product at $11.70 per unit and...
1.) A firm expects to sell 25,700 units of its product at $11.70 per unit and to incur variable costs per unit of $6.70. Total fixed costs are $77,000. The total contribution margin is: 2.) A manufacturer reports the following information below for its first three years in operation. Year 1 Year 2 Year 3 Income under variable costing $ 90,000 $ 123,000 $ 129,000 Beginning inventory (units) 0 940 570 Ending inventory (units) 940 570 0 Fixed manufacturing overhead...
Maple Inc. manufactures a product that costs $21 per unit plus $46,000 in fixed costs each...
Maple Inc. manufactures a product that costs $21 per unit plus $46,000 in fixed costs each month. Maple currently sells 5,000 of these units per month for $43 each. If Maple leased a machine for $10,000 a month, it could add features to the product that would allow it to sell for $46 each. It would cost an additional $4 per unit to add these features. How much would Maple's profit be affected if it leased the machine and added...
At the break-even point, Select one: a. sales equal total fixed costs. b. contribution margin equals...
At the break-even point, Select one: a. sales equal total fixed costs. b. contribution margin equals total variable costs. c. total variable costs equal total fixed costs. d. total operating costs equal sales. e. none of these answer choices are correct. f. sales equal total variable costs.
1. Wang Co. manufactures and sells a single product that sells for $540 per unit; variable...
1. Wang Co. manufactures and sells a single product that sells for $540 per unit; variable costs are $324 per unit. Annual fixed costs are $836,000. Current sales volume is $4,290,000. Compute the contribution margin per unit. 2. A firm expects to sell 24,800 units of its product at $10.80 per unit and to incur variable costs per unit of $5.80. Total fixed costs are $68,000. The total contribution margin is: 3. McCoy Brothers manufactures and sells two products, A...
BM Company sells two products, X and Y. Product X sells for $20 per unit with...
BM Company sells two products, X and Y. Product X sells for $20 per unit with variable costs of $11 per unit. Product Y sells for $30 per unit with variable costs of $16 per unit. During this period, BM sold 16,000 units of X and 4,000 units of Y, making Total Revenue of $440,000, and after subtracting variable cost got Total Contribution Margin of $200,000, and after subtracting Total Fixed Cost of $110,000, earned Operating Profit of $90,000. The...
Steven Company has fixed costs of $289,518. The unit selling price, variable cost per unit, and...
Steven Company has fixed costs of $289,518. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price per Unit Variable Cost per Unit Contribution Margin per Unit X $848 $318 $530 Y 645 345 300 The sales mix for Products X and Y is 60% and 40%, respectively. Determine the break-even point in units of X and Y. Round answers to the nearest whole number. units...
Metal Industries has monthly fixed costs totaling $90,000 and variable costs of $5 per unit. Each...
Metal Industries has monthly fixed costs totaling $90,000 and variable costs of $5 per unit. Each unit of product is sold for $20. Assume the company expects to sell 11,850 units of product this coming month. What is the margin of safety in units? Group of answer choices 8,850 6,600 5,850 7,350 Tech Products, Inc. has monthly fixed costs totaling $90,000 and variable costs of $5 per unit. Each unit of product is sold for $20. How many units must...
Heyden Company has fixed costs of $705,600. The unit selling price, variable cost per unit, and...
Heyden Company has fixed costs of $705,600. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $700 $460 $240 ZZ 380 260 120 The sales mix for Products QQ and ZZ is 20% and 80%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. a. Product...
Your product unit costs are expected to be $2.50 per pair. Shipping and delivery costs to...
Your product unit costs are expected to be $2.50 per pair. Shipping and delivery costs to retailers are estimated at $1.70 per unit. In addition, you will have to pay commissions of $.30 per unit sold to the sales representatives. You want a “markup” of 50% and your retailers want desired a mark-up before their expenses of 40 percent In addition, you want a salary of $7,000 per month. Other administrative expenses will be $2,500 per month. Find unit contribution...
A furniture manufacturer specializes in wood tables. The tables sell for $ 75 per unit and...
A furniture manufacturer specializes in wood tables. The tables sell for $ 75 per unit and incur $ 25 per unit in variable costs. The company has $ 5,000 in fixed costs per month. 6. Prepare a contribution margin income statement for one month if the company sells 550550 tables. 7. What is the total contribution margin for the month when the company sells 550550 ​tables? 8. What is the unit contribution​ margin? 9. What is the contribution margin​ ratio?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT